Canalys: Global smart personal audio shipments to grow 10.6% year-on-year in the second quarter of 2024

According to the latest research from Canalys, the smart personal audio market (including TWS, wireless earphones, and wireless headphones) rebounded strongly in the second quarter of 2024, with significant growth in several segments. Total shipments reached 106 million units, a year-on-year increase of 10.6%, the highest second-quarter shipments in history. Both TWS and wireless headphones were growth drivers, reaching 77 million units and 15 million units, respectively.

TWS continues to lead and innovate

TWS remains the leader in the global smart personal audio market in the second quarter of 2024, consolidating a 72.6% market share with an annual growth rate of 12.6%. Despite the slowdown in the traditional TWS market, leading suppliers have skillfully responded to the challenge by strategically pricing models below $50. This quarter, the market share below $50 exceeded 50% for the first time.

“Vendors are actively seeking to add novel features to stand out amid fierce competition of homogenized features and price wars,” said Cynthia Chen, research manager at Canalys. “Huawei’s Lipstick 2, designed as a lipstick, appeals to female audiences with premium materials and fashionable attributes. JBL has added a display to the headphone case, allowing users to check notifications directly, reducing reliance on the phone and enhancing interaction with the headphones, which are positioned as standalone devices. On the other hand, some players are looking to increase the popularity of AI by incorporating AI assistant features into their latest products, such as Nothing and iFlytek. While it is too early to tell whether AI features will drive usage and user experience, these emerging vendors are hoping to win over consumers by leveraging AI.”

Consumers are embracing the open-ended factor

“Open-ear headphones, both TWS and wireless, will be a bright spot for growth this quarter,” added Chen. “High technological barriers limit the open-ear form factor. However, vendors have managed to differentiate it from the niche segment by offering consumers a unique user experience and affordable price points, which is very welcome considering the adaptability of its form factor to various scenarios. Leading brands like Shokz are strengthening their focus on sports integration, while Huawei’s innovative clip-on design enhances comfort and style. Both companies have a market share of more than 10% in the open-ear size segment. As more vendors launch products in this space, the novelty of new form factors will start to fade in the next 12 months, and vendors will need to focus on product quality and feature improvements rather than just form factor innovation.”

Wireless headset market rebounds, balancing high-end and cost-effective options

“Market expansion by emerging players is driving the sector’s recovery in the second quarter,” said Jack Leathem, research analyst at Canalys. “QCY, Baseus and Anker are aggressively entering international markets with their mass-market products in the $50 to $100 range. They have disrupted the entry-level market with seamless wireless connectivity and long battery life, and have quickly penetrated established retail channels. On the other hand, established audio players like Bose and Sony dominate the high-end ($350 and above) market. After exiting the low-end competition, they have refocused their strategies on the high-end market, differentiating themselves through premium sound quality. Market leadership in audio fidelity will help these players protect their high-end user base, allowing them to build sustainable revenue streams.”

“The audio market is becoming increasingly crowded as major vendors still see opportunities to expand their presence,” added Chen. “Technological advances are enabling brand vendors to offer high-quality, high-performance products at competitive prices, replacing white-label products, especially in emerging regions. In addition, the shift from wired to wireless earphones due to improved connectivity and shifting consumer preferences has also laid a solid foundation for growth in the wireless audio segment. To compete in such a dynamic market segment, vendors are keen to differentiate, but differentiation strategies must be aligned with the vendor’s core business strategy, ensuring that they resonate with target consumers and convey the brand’s unique value proposition.”